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Fed Powell addresses US economic outlook at University of Chicago forum
Federal Reserve Chairman Jerome Powell raised an important issue, addressing both the short- and long-term prospects for the US economy. He delivered a relevant speech at the University of Chicago's Booth School of Business, followed by a discussion session.
Powell noted that the United States stands out among other major economies due to its productivity growth. He credited the country's strong economic performance to its national financial system and population growth.
The Fed chairman also mentioned the regulator's plans to reassess the changes made to its structure in 2020. While these changes, implemented five years ago, have proven effective, the time has come for a thorough review. The reassessment is expected to focus on the Fed's post-meeting communication strategy and other critical areas.
Regarding global banking standards, Powell confirmed the Fed's intention to complete the final phase of Basel III, adding that the Basel agreements are crucial for global banking standards. In addition, the official discussed the potential impact of President Trump's tariffs on the economy, noting a high likelihood of price increases following their implementation. He stressed that the key factor for the economy is the net effect of " implementing significant policy changes in four distinct areas: trade, immigration, fiscal policy, and regulation."
Furthermore, the head of the US central bank highlighted the importance of economic data collected by the government and called for increased investment in government structures. Alongside this, Powell emphasized the significance of the Fed's independence, "especially when it comes to making "unpopular decisions."
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